The impacts of Brexit on United Kingdom and European Union trades and logistics - Impacts on import/exports, trades and logistics through the perspective of Sweden and online retails in Ireland

Abstract

After 47 years as a member of the EU, on the 29th of March 2017, the government of Great Britain applied to resign from its membership. After almost three years, the term “Brexit” echoed all over the world. On the 1st of January 2021, the United Kingdom is no longer a part of the EU. Thus, the general definition of Brexit commenced, especially concerning trades between Sweden and the UK. The aim of the study was to create a perception and greater understanding of the impacts of Brexit on the trades and logistics between Sweden and the UK. The thesis was performed at Chalmers university of technology, the division for Maritime Studies, department of Mechanics and Maritime Sciences. Brexit creates a more expensive trade, value added tax (VAT) is included, taxes and fees that did not exist pre-Brexit. For the aspects of trading, private consumers tend to move away from purchasing goods from England. The general trading scenarios, however, represents more money spent, longer transit times and documents required in order to perform transportations. Although, the previously mentioned are not the only effects of Brexit. The four inner markets also play the role for trades regarding Brexit. The UK will need to rely more on closer and domestic entrepreneurship and will take the bigger hit in comparison to Sweden, since the Swedish exports of, for instance, timber will still be demanded product in the UK. As for the differences in effects on transport modes and cargo types, the answer leans towards road transports respectively cargos such as foods, livestock and animal products which are represented as the most impacted areas. Transports by road suffer consequences such as delays, increased transit times, added controls and document requirements. That is due to the lack of efficient preparations and adaptions in advance as well as sufficient capacities in the aspect of resources and infrastructure. Meanwhile, food cargoes will be subject to inspections, controls and possibly extensive requirements for certificates and documents, due to added or advanced quality standard requirements. Brexit as a subject is far too broad to comprehend into one study, not all market segments have been studied. Delimitation was therefore set to research the impacts of what have or will happen, but also the prediction of what could occur in the future.